A deal to merge Npower and SSE's retail operations has been given the final clearance as the energy giants are not close rivals on standard variable tariffs (SVTs), the Competition and Markets Authority has announced.

The CMA had been concerned over the impact of the deal on SVTs and pricing, but said it found customers of the Big Six providers prefer to shop around and switch to other providers.

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Anne Lambert, chair of the CMA inquiry group, said: "With many energy companies out there, people switching away from expensive standard variable tariffs will still have plenty of choice when they shop around after this merger.

"But we know that the energy market still isn't working well for many people who don't switch, so we looked carefully at how the merger would affect SVT prices.

"Following a thorough investigation and consultation, we are confident that SSE and Npower are not close rivals for these customers and so the deal will not change how they set SVT prices."

At the time Anne Lambert, chair of the inquiry group at the Competition and Markets Authority, said: "With more than 70 energy companies out there, we have found that there is plenty of choice when people shop around.

"But many people don't shop around for their energy. So, we carefully scrutinised this deal, in particular how it would impact people who pay the more expensive standard variable prices.